The UK Government is committed to further development of carbon capture, utilization and storage (CCUS) through the Track-2 process which will establish 2 new clusters, contributing to our ambition to capture and store between 20 and 30 megatonnes per year (mtpa) of COโ throughout the economy by 2030.
On July 31, 2023, the Department of Energy Security and Net Zero (DESNZ) announced that, following a review of expressions of interest (EoI) applications based on Track-2 eligibility criteria, transportation and storage of acorns and Vikings (T&S) systems, due to their maturity, remain in the best position to meet our objectives for Track 2, at this stage, subject to final decisions, due diligence, consent, subsidy control, affordability and value for money assessments.
By developing the Track 2 process, the government aims to ensure that experience and knowledge gained under Track 1 are integrated. Therefore, the Track-2 process will be adapted from Track-1 to establish groups at a pace and provide a platform for flexibility and innovation in future rounds of construction, as well as to carry out T&S sizing and preparation before launching the selection of the capture project.
The government has entered into an initial engagement with Acorn and Viking. T&S systems, and in early 2024 will ask Acorn & Viking to submit plans for the evaluation of an 'anchoring phase' of initial capture projects tentatively targeted for deployment between 2028 and 2029, subject to technical feasibility, affordability and value for money. To provide context, we will also request that Acorn & Viking provide an interim cluster expansion plan for a "build phase" of additional network and storage expansion to enable additional projects. Capture projects wishing to connect to the Acorn and Viking clusters before 2030 may consider collaborating with transport and storage companies (T&SCos) directly if they haven't already. Anchor plans would need to be consistent with the requirement for a credible demonstration of pipeline connection to at least two projects for an initial capture phase and allow for future phases of storage and network expansion to allow for additional pipeline transportation and without pipes (NPT) Projects. There will be a shipping window for the T&S Systems will submit its anchor project proposals in early 2024, along with updates on construction access plans.
More guidance on the process, the criteria applicable to any project in that anchor phase and the respective roles of the government and the T&S The system will be provided in due course. DESNZ will continue to examine issues such as subsidy control rules, value for money (VfM) assessments, delivery of emissions savings and affordability in this process and reserves the right to explore other delivery options. Any T&S Systems submissions would be subject to eligibility checks, credibility of deliverability, commercial viability, cost assessment, due diligence and a negotiations process.
This approach is being taken to establish cluster deployments quickly with mature projects and test the operation of the first storage volumes, with the build phase to provide the opportunity for additional projects to access the clusters soon after.
